Morning update for 29 January 2021

Indices at 10:00 am

        Nifty50 13,837 ▲ 19 (+0.1%)

          Sensex 46,912 ▲ 38 (+0.0%)

          Nifty Bank 30,430 ▲ 71 (+0.2%)

In the news

TVS posts record revenues in Q3

• The Chennai-based bikemaker posted its highest-ever quarterly revenues of at ₹5,391 crore, a 31% YoY growth. It recorded a profit of ₹266 crore, a strong 119% YoY jump. 
• Strong festive sales, high rural demand and a rebound in exports helped pick up in sales. During the quarter its domestic 2 wheeler sales grew at 21% beating industry growth rate of 13%. Its stock surged 8.2% today and has gained over 20% so far in this month.

Interglobe posts 4th straight quarterly loss

• The operator of India's largest domestic airline Indigo reported a net loss of ₹620 crore in Q3, against a net profit of ₹496 crore in the same period last year. Revenue from operations improved QoQ to ₹4,910 crore, but was 50% lower YoY.
• While travel restrictions may have put the entire airline sector into losses, Indigo seems to be better placed with a war-chest of nearly ₹18,000 crore in total cash balance. The stock was trading flat today.

IRCTC’s Q3 profits plunge

• The railway catering body reported a 62.1% YoY decline in its Q3 profit which stood at ₹78 crore. However, on QoQ basis the profits rose 144%. A similar trend followed in the company’s revenue figures, which declined 68.6% to ₹224 crore. However, the revenues rose 154% on a sequential basis.
• Covid-induced travel restrictions were the main reason for the drop in YoY performance. The stock traded 0.8% higher today.

Bluedart posts strong profits in Q3

• The logistics company recorded a profit of ₹95.3 crore compared to a net loss of ₹31.9 crore. It reported revenue from operations of ₹1,037.1 crore, up 21% YoY. 
• The company credited the rapid scaling up of deliveries in sectors viz. e-commerce, pharmaceuticals, consumer electronics as the main reasons for the surge in business. The stock traded 1.5% higher today.

India set to grow fastest in FY22

• India’s GDP could grow as fast as 11% in FY22, reports suggest. The International Monetary Fund also predicts growth of 11.5% for India. This pace would make India the fastest-growing major economy in the world, ahead of China, which is set to grow at 8.1%. 
• The optimism stems from the belief that vaccine rollout will contain the pandemic, while softer interest rates and pro-growth measures from the government will accelerate business activity. It’s worth noting that the FY22 numbers will be on top of a lower base of a 7.7% contraction.

Events this week

• Friday: Economic Survey 2020-21 (India), Pending home sales (US)

Sectoral indices

Fact of the day

94% of the world’s population recognizes Coke’s red and white logo
Source: Strategicfactory

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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.